Business & FinanceLatest NewsLatest News
AU Small Finance Bank offers up to 7.4% on FDs; senior citizens get 7.9%
Sentiment: NeutralMedium Priority
What Happened?
AU Small Finance Bank is offering fixed deposit interest rates of up to 7.40% for regular customers and 7.90% for senior citizens. The highest rates apply to tenures from 30 months to 36 months.
Key points
- Regular customers below 60 years can earn up to 7.40% p.a.
- Senior citizens aged 60 years and above can earn up to 7.90% p.a.
- Fixed deposits are available for tenures ranging from 7 days to 10 years.
- The highest rates apply to deposits with tenures of 30 months and one day to 36 months.
- Interest income is taxable based on the depositor's income tax slab.
Key insights
- The additional interest rate for senior citizens may enhance their income from fixed deposits.
- Investors should consider the tax implications on interest income when choosing fixed deposits.
- A laddering strategy can help balance liquidity and returns for depositors.
Why it matters
This offering could benefit senior citizens seeking higher returns on their savings.
Tags
Entities
AU Small Finance Bank· Organization
Source
Business Standard
